Visitors to Lijiang in Southwest China's Yunnan province will not need to travel with a lot of cash on them during the coming National Day holiday.

With a strategic partnership agreement signed between the Lijiang government and Ant Financial, the Internet finance affiliate of China’s e-commerce giant Alibaba Group Holding Ltd, on Sunday, visitors to the popular tourist destination are offered an alternative solution - carrying their smartphones and making payments through Alipay.

According to a statement by Ant Financial, about 80 percent of business owners at the main attractions in Lijiang have agreed to let customers pay by Alipay, the most widely used mobile payment application run by the Hangzhou-based Ant Financial.

Under the partnership between Ant Financial and the Lijiang government, tourists can not only pay for the dinner and tickets via Alipay but can also use the app to make reservations at hotels and pay cab fares.

"We will make efforts to help Lijiang build its smart tourism industry. We understand the government's determination to use the model of Internet Plus to innovate the development of the ancient city," said Wang Lijuan, who is in charge of Ant Financial’s local lifestyle business division.

The Lijiang government's agreement with Alipay is just one part of a package deal it signed with Alibaba. The e-commerce conglomerate is expected to innovate and upgrade the city's operation in various sectors from medical care to retail via Internet technology.

Since April Ant Financial, Alibaba Group and Sina Weibo have been teaming up to offer a one-stop "smart city" solution to help local governments in China upgrade management and services. As many as 82 cities have signed up for the smart solution so far.